Title
Hold a public hearing on proposed Certificates of Obligation (CO), Series 2017 (Assistant City Manager)
Background:
In 2016 the City Council adopted the 2017-2021 Capital Improvement Plan (CIP). This plan provides for $408.9 million in city projects over the next five years. These projects include necessary roadways, facilities and water utility initiatives. Citizens can view the plan in its entirety on the City’s website at www.leaguecity.com.
Funding for the plan’s projects is provided from various sources and is also outlined in the 2017-2021 Capital Improvement Plan (CIP). Existing bond funds, operating funds, grant funds, 4B funds and other available funds are exhausted first, before the use of debt. The plan estimates both the costs and the required funding on an annual basis.
Current funding required
The CIP anticipated $13.5 million in debt for this fiscal year. Staff’s review of both the status of the projects and the funding determined the $13.5 million continues to be the anticipated funding need for the next 12 months. In addition, Tax Increment Reinvestment Zone (TIRZ) #4 is prepared to fund $4.5 million through this issue. Based upon current projections prepared by the City's financial advisory firm, First Southwest Company, we expect the final bond issue to be a total of $18.2 million with bond issuance cost of approximately $200,000. “Tax supported” projects include the Ervin Connector, the Animal Shelter, Fire / EMS Station 6 and Downtown Revitalization. “(Utility) Revenue supported” projects include the West Side Well and Booster Pump Station, Southeast Service Area Trunks, North Service Area 16" waterline, Sanitary Sewer reahabilitation, lift station improvements and Dallas Salmon Efflluent Discharge Improvements.
Certificates of Obligation
Funds required in the amount of $8.33 million are related to the water utility system. These projects could be funded through a ‘revenue bond’ - an instrument that is only secured by ...
Click here for full text